EQS-Adhoc: PIERER Mobility: Strategy sharpening and guidance adjustment

EQS-Ad-hoc: PIERER Mobility AG / Key word(s): Strategic Company
   Decision/Change in Forecast
   PIERER Mobility: Strategy sharpening and guidance adjustment

   05-Dec-2023 / 17:51 CET/CEST
   Disclosure of an inside information acc. to Article 17 MAR of the
   Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS
   Group AG.
   The issuer is solely responsible for the content of this announcement.

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   Ad hoc announcement pursuant to article 17 Regulation (EU) No 596/2014
   (MAR)

   Ad hoc announcement pursuant to article 53 LR

    

   Wels, December 5, 2023

    

   PIERER Mobility: Strategy sharpening and guidance adjustment

    

     • Focus on the core brands KTM, GASGAS, Husqvarna and MVAgusta
     • Divestment of the Raymon and FELT brands and the non-e-bicycle
       division
     • Partial relocation of production and R&D activities to China (CFMOTO)
       and India (Bajaj Auto)
     • Adjustment of the 2023 guidance and outlook for 2024

    

   Focus on the core brands KTM, GASGAS, Husqvarna and MVAgusta

   The Board of Directors has taken the strategic decision to focus even more
   strongly on the core powered two-wheelers business (motorcycles and
   e-bicycles) and to concentrate on the premium brands KTM, GASGAS and
   Husqvarna as well as MVAgusta.

   As a result of this decision, the Board of Directors initiated the sale of
   the Raymon and FELT brands and the divestment of the non-e-bike division.
   The sale of the R Raymon brand has now been signed. The closing will take
   place by the end of 2023. The R Raymon bicycle brand, which was founded in
   2017, will continue to be managed by Susanne and Felix Puello in a new,
   independent set-up. In addition, the process of selling the FELT bicycle
   brand to a consortium led by Florian Burguet has also been initiated and
   is expected to be closed in the first half of 2024. Florian Burguet will
   step down from the Management Board of PIERER Mobility AG at the end of
   December.

   Electric bicycles (e-bicycles) from the Husqvarna and GASGAS brands are
   being promoted and expanded in order to further strengthen activities in
   the field of electromobility. As of the 2024 financial year, the segment
   reporting will be newly structured. In future, it will be reported in the
   segments “Motorcycles” and “E-Mobility”. In addition to e-bicycles, the
   new "E-Mobility" segment will in future include all electrically powered
   two-wheelers such as e-motorcycles, e-minis and stand-up scooters.

   The corresponding resolutions will be presented to the Supervisory Board
   at the next meeting.

    

   Partial relocation of production and R&D activities to China (CFMOTO) and
   India (Bajaj Auto)

   The unfavourable economic conditions in Europe have led to the decision to
   relocate parts of production for individual mid-range models and certain
   R&D activities to strategic partner Bajaj Auto, India, and CFMOTO, China.
   Among other things, this is intended to exploit cost advantages in these
   regions and accelerate development and industrialisation processes.

   This strategic decision is associated with a necessary reduction in staff
   of up to 300 employees at the Austrian locations in 2024.

    

   Adjustment of the 2023 guidance

   In the motorcycle business the cost of dealer inventories has risen
   sharply due to significantly higher interest rates despite good market
   demand. PIERER Mobility is strengthening its dealer structure by extending
   payment terms and offering higher discounts.

   Due to the sufficient liquidity reserves available, PIERER Mobility AG
   supports not only its dealers but also its suppliers in order to cushion
   the significantly increased financial burdens caused by the rise in
   interest rates and improve their liquidity situation.

   This planned measure will lead to a significant reduction in total assets
   and thus to a higher equity ratio for the group. The associated negative
   impact on the company's cash flow for the 2023 financial year is being
   consciously accepted.

   With the motorcycle business remaining at the guidance level, the
   reorientation of the bicycle business that has been initiated will have a
   significant negative impact on the overall result in 2023.

   For these reasons, the guidance for the 2023 financial year has been
   adjusted. The Board of Directors expects sales growth for the 2023
   financial year of 7 % to 9 % with an EBIT margin of between 5 % and 7 %.

    

   Outlook for the 2024 financial year 

   We expect the global economic environment to be difficult in the 2024
   financial year. For the PIERER Mobility Group, 2024 will be a year of
   consolidation, which will be used to strengthen the core business.

   In order to secure the group's profitability, the management will
   implement cost-cutting measures in the double-digit million range in the
   2024 financial year.

   The Board of Directors expects sales to remain almost unchanged and an
   EBIT margin of 5 % - 7 %.

    

   About the PIERER Mobility Group

   PIERER Mobility AG is the holding company of Europe’s leading manufacturer
   of powered two-wheelers, producing a full range of premium brands
   including KTM, GASGAS and Husqvarna Motorcycles. With its innovative
   strength, PIERER Mobility is a pioneering technology leader in two-wheeled
   e-mobility through its motorcycle brands. The premium brand range also
   includes high-performance components under the WP brand and special KTM
   X-BOW high-performance sports cars.

    

   Disclaimer

   THIS ANNOUNCEMENT DOES NEITHER CONSTITUTE AN OFFER TO SELL NOR AN
   /INVITATION TO SUBMIT A PROPOSAL FOR THE ACQUISITION OF SECURITIES OF
   PIERER MOBILITY AG. THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR
   DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO OR WITHIN
   THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER
   JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

    

   Contact:

   Investor Relations

   Melinda Busáné Bellér

   Tel: +43 (0) 1 533 1 433 - 70

   Email: [email protected]

   Website: [1]www.pierermobility.com

   ISIN: AT0000KTMI02; Swiss Valor Number (Switzerland): 41860974; Ticker
   Symbol: PKTM; Bloomberg: PKTM SW, PKTM AV; Reuters: PKTM.S; PKTM.VI

   End of Inside Information

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   05-Dec-2023 CET/CEST News transmitted by EQS Group AG. www.eqs.com

   ══════════════════════════════════════════════════════════════════════════

   Language:    English
   Company:     PIERER Mobility AG
                Edisonstrasse 1
                4600 Wels
                Austria
   Phone:       +43 (0) 7242 69 402
   E-mail:      [email protected]
   Internet:    www.pierermobility.com
   ISIN:        AT0000KTMI02
   WKN:         A2JKHY
   Listed:      SIX, Vienna Stock Exchange
   EQS News ID: 1789925

   Valorennummer (Schweiz): 41860974 Wertpapierkürzel: PKTM Bloomberg: PKTM
   SW; PKTM AV Reuters: PKTM.S; PKTM.VI

    
   End of Announcement EQS News Service


   1789925  05-Dec-2023 CET/CEST

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